Lately, we have heard more and more about environmentally friendly and sustainable mobility. In fact, businesses whose operations depend on the mobility of people are interested and private individuals who wish to reduce their consumption and environmental effect for the good of the environment but also to lower their yearly transportation costs are interested in this market.
Electric vehicles such as scooters are becoming increasingly popular, and some people may, understandably, consider starting a rental business with e-scooters because they are eco-friendly, electric, and have low consumption.
This is an industry that is booming, including micro-mobility, sustainable and electric mobility, and a growing trend that was accelerated by the Covid-19 coronavirus epidemic. Therefore, starting an e-scooter rental company might be a business concept that responds to and foresees market mobility trends, even those yet to come.
The Market and Reasons To Invest in the Industry
The global market for electric scooters and other electric vehicles is developing, just like the number of people interested in sustainable transportation and minimal environmental impact.
According to predictions for the market, the “boom” is already in motion but will soon reach its peak. According to estimates, a considerable portion of the population is expected to utilize electric automobiles daily between the years 2023 and 2025.
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In fact, in the 2020s and 2021s, micro-electric vehicles like bicycles, scooters, and electric scooters from popular brands like Official Hoverboard have already started to colonize all major cities worldwide. Even in the upcoming years, the sector will continue to grow rapidly.
Find the Best Electric Vehicle Franchises
In the near future, the industry is anticipated to keep growing, particularly in those states that offer incentives, concessions, and funding to help assist the development of an ecosystem conducive to electric vehicles.
A considerable increase in sales in the industry and the emergence of new, more environmentally friendly businesses indicate this trend. Therefore, entering this market now entails addressing the current demands and trends of the mobility market, forecasting the future, and doing so when the level of competition is still low, and there is room for experimentation.
Procedures and Requirements
The type of e-scooters and the activity you wish to specialize in will greatly impact the procedures, laws, and rules you need to follow. The personal requirements and those inherent in the administrative process, as well as other factors like the location, might differ greatly depending on whether you want to create an electric scooter sales business or an electric scooter rental point.
Let’s look at some procedures for starting a business that rents electric vehicles:
- Adding the business to the register;
- Announcing the beginning of activities to the municipality (at least 30 days before the start);
- Personal qualifications, which include being of legal age, having a driver’s license, not having any criminal records, not having filed for bankruptcy, etc.;
- Drafting a contract that describes the terms of the service being provided in detail and outlines parties’ obligations – even in the case of mishaps, thefts, malfunctions, etc.;
- Establishing the appropriate insurance for electric vehicles and their upgrades, repairs and routine maintenance;
- Licensed locally, in accordance with the activity and particular services provided;
- If more than nine electric vehicles are being rented out or sold, a fire department permit for fire prevention will need to be obtained;
- Sending the required paperwork to the municipality about the business, the vehicles, the owner, and any partners.
Franchise Fees and Startup Costs
Starting an electric rental business could be very expensive and challenging if you still haven’t researched the costs and fees required to pay and start renting e-scooters at competitive rates and with convenient payment terms.
An initial expenditure of about 150,000 dollars will be needed to launch an electric scooter rental business, for instance, by purchasing scooters from dealers. However, only about 80,000 dollars will go into buying the scooters (about 10).
The other costs will go toward starting-up expenses like staff and finding a location, upgrading equipment, and other structural costs (especially the electrical system), furniture, the placement of one or more charging stations for electric vehicles, and expenditures associated with launching a business and meeting administrative regulations, as well as marketing and fees for the vehicles.